Gold miner AngloGold Ashanti has agreed to pay $150 million (R2.6 billion) in cash to acquire a subsidiary of Coeur Mining with mining concessions in Nevada adjacent to its own, the companies said yesterday
The unit, Coeur Sterling Inc, holds properties in Nevada estimated to hold 914 000 ounces of gold. AngloGold Ashanti agreed to pay Coeur an extra $50m if further exploration results in a mineral resource greater than 3.5 million ounces.
“The addition of these properties consolidates our ownership position in one of North America’s most promising new gold districts,” said AngloGold Ashanti chief executive Alberto Calderon.
The company said it was anticipated, prior to this acquisition and the additional potential it brings, pending the results of the studies already underway, as well as the progress of the attendant permitting process, that first production for AngloGold Ashanti from the Beatty District would be realised in about three years’ time, and that the Beatty District would yield production to AngloGold Ashanti of about 300 000 ounces a year, with an all in sustaining cost of less than $1 000 per ounce, by the end of the decade. - Additional reporting by BR.
REUTERS